How do inventors approach investors for backing without giving away their precious, fledgling products?
Alan Walker, of Scyence Systems in Hackney, East London, developed a mobile hand washing device for hospitals to prevent the spread of dangerous infection, such as the superbug. He had no funds to build prototypes and took his idea to the NHS. But, he says, they wanted all rights to the design and for him to pay for the development. He was not impressed.
Normally, says Carl Rohsler, an intellectual property lawyer, there is a give-and-take agreement. The inventor gives up some of their rights in return for development funds and promotion of the product. They then often receive royalty-style payments.
But the first step is to protect the design with a non-disclosure agreement (NDA) – preventing people to whom an inventor shows plans from stealing the idea.
Mr Walker did right by getting the NHS to sign an NDA and says that if inventors do not take this precaution they could be "bankrupt in about two hours!"
Mr Rohsler, a partner at Hammonds in the City of London, says: "NDAs are crucial before talks. Most reputable manufacturers or developers will want one for their own protection anyway." He says that this prevents any arguments later if the company happens to develop something that seems similar.
Inventors’ websites offer generic NDA templates for around £10.
The inventor, Mr Rohsler says, must be careful not to otherwise disclose their idea to anyone unless they have secured a patent. If they tell anyone about their invention without using an NDA, that constitutes a public disclosure – which can make a patent application invalid.
"You need to be able to show that all disclosures are confidential," Mr Rohsler says. "Don’t go talking to your local newspaper about your great idea."
Patents
Patents tend to be limited to one country. So if an inventor gains a patent for a lamp in the UK, there is nothing to stop someone in Germany copying it. To apply in 20 countries, having the application translated into 20 languages, can cost a lot of money.
"Pharmaceutical companies are spending upwards of £1 million just to get a patent. You can't play at the tables without a stash of cash," Mr Rohsler says.
